Simulation-based analysis of the potentiality of incentives for prosumer flexibility

Abstract

In the last few decades, the diffusion of technological solutions in the green energy area has often been fostered and advanced by governments. Thanks to an incentive-driven policy, advancements in clean energy utilizing Renewable Energy Sources (RESs) such as solar panels and wind turbines, have spread all over the world and have become part of our everyday life. In this paper, the fostering approach of government to support the dissemination of prosumer flexibility inside the grid is examined. Full inclusion of prosumers into the regulatory framework of the electricity sector can lead to important improvements regarding the network operating conditions. Prosumers can be dynamic actors in the emerging smart grid, and are characterized by their flexibility in responding to the grid contingencies. Demand Response (DR) is the most widely used technique for incorporating prosumer interaction with the electricity grid. Several additional categories of prosumers can be identified and, from the literature, the average rate of their potential flexibility can be determined. The objective of this paper is to demonstrate the usefulness of different categories of prosumers and give the means for quantifying their impact, in order to identify which integration techniques are appropriate for various system conditions to assure and maximize overall system flexibility. These conditions may involve regional or national contributions, such as incentives, tax reduction, and initiatives. We would like to demonstrate how central government policies may support the transition of traditional plants, buildings, campuses, etc. into active players of the modern electrical power system. Distribution System Operators (DSOs) are the key stakeholders for this transition and their collaboration with the different categories of prosumers is part of an advanced proposal. DSOs are able to communicate with the prosumers within their service areas, exchanging consumption andgeneration profiles, which are used by the active nodes of the smart grid to vary their power absorption or supply, respectively.